Well I talk about this constantly and go through periods where even though I know it happens, I let it go and others where it irks me. One of my favorite commercials is the one where the guy is yelling it is a Travesty a Sham and a Mockery, stutters then says "It's a Traveshmockery!"
What the US government is doing in the index futures is clearly that. It has never been this blatant, and I am shocked that more is not being made of this. Yesterday was another clear example of the market rolling over and starting to pick up some downside momentum. Then "magically again in the last 45 minutes a big reversal back up. Folks no matter how you cut it, this is just not right and mark my words this artificial inflating of this whole uptrend is going to be a big problem at some point. It is not a big deal to allow the market to correct for a few days, then move higher again. By forcing it up virtually every day they are not doing us any long term favors here believe me.
It is my opinion that there is no way any fund or large individual trader would have put on a buy program when this last minute save occurred again yesterday. Literally every day that I can remember when we have been down over 50 points in the Dow coming into the last hour, we have had a significant rally into the close. The markets are very random, this is far beyond what would be a normal distribution of price movement. It is artificial.
There are certain parameters that are generally used and they were not at levels that would generate this type of thing at that point yesterday. I do have to admit I am biased because I am short the Naz futures and some individual stocks. However, this is a topic I talk about repeatedly in here. I guess my blog is not widely enough read to have been brought to Barry's henchmens attention. I have no doubt if it were, they would be threatening me like they seem to do with everyone else behind the scenes that does not agree with them.
The odd thing about this which I cannot explain is how they are managing to keep large funds from large scale sell programs at the times in a balanced market you would normally see them. I supposed behind the scenes incentives or some other such "deal" or "conversation" might be taking place. It might be being suggested that it would not be a good idea to launch any major sell programs? I have no idea and no proof whatsoever about anything along those lines that might be going on. I do know that this is the most unbalanced stock market situation I have ever seen in my career from this standpoint. Even the big bull market of the late 90's was not like this.
With all that aside I will stay with my short with no expectation at all of a win. These guys are just not going to let this market even have a minor correction the way it looks right now. Below is one of the individual stocks you can see I shorted yesterday, FEDEX. Will any of them work? Who knows? I did decide not to short the Q's and QID with my futures short yesterday just because I want to be light on this position. The way the PPT is controlling things I just don't see any reason to get overly excited on the short side right now. I only shorted 700 shares here, but once you do 4 or 5 trades like that you use up 400k of margin really quick.
May the force be with you, which in this case is the PPT on the long side!